MFS market flourishes, transactions surge by Tk3.84 lakh crore in 2024

Infographics: TBS

Zakir Hossain, a salesman at Fu-Wang Foods Limited, often runs out of money at the beginning of the month since his salary is paid between the 10th and 15th. During this time, the convenience of mobile transactions helps him quickly resolve his financial crunch.

Whether it's for rent in his shared accommodation in the capital or household expenses in his village, he takes out a bKash loan within minutes.

"With bKash loans, I don't need collateral or a bank visit, and I can repay at any time. I studied only up to Class 8, but even with limited education, I can easily withdraw money through the app," Zakir said.

Due to such convenient features and the ease of transactions, the popularity of Mobile Financial Services (MFS) is steadily growing.

According to the Bangladesh Bank, in 2024, transactions through MFS increased by nearly Tk3.84 lakh crore or 28.42% compared to the previous year.

The latest updated data from the central bank shows that, in 2024, customer transactions via MFS reached Tk17.37 lakh crore – up from Tk13.52 lakh crore in 2023.

Shamsuddin Haider Dalim, head of Corporate Communications and Public Relations at bKash Ltd, told TBS that MFS services are "no longer limited to services like Send Money or Cash Out".

"With new services being introduced to meet customer demand, its popularity has expanded significantly."

The journey of mobile financial services in the country began on 31 March 2011 with the launch of the service Rocket by Dutch-Bangla Bank in the private sector. Later, bKash, as an associate of BRAC Bank, introduced its own MFS service.

Over time, many more banks joined the sector, and currently, 13 institutions provide MFS services. These include Rocket, bKash, MYCash, Islami Bank mCash, Trust Axiata Pay (TAP), FirstCash, Upay, OK Wallet, Rupali Bank, TeleCash, Islamic Wallet, Meghna Pay, and Nagad.

Data from the Bangladesh Bank also indicates that by December 2024, the total number of MFS accounts reached 23.86 crore, up from 22.04 crore in December 2023 – an increase of 1.82 crore account holders over the year.

The report shows that the number of entrepreneur agents in MFS reached 18.28 lakh by December 2024, up from 17.24 lakh in December 2023.

Dalim said, "Through bKash, 3.3 million new customers have linked their accounts to banks, with many using bKash to save money through small DPS plans. Additionally, the ability to take loans through bKash without any collateral has made this service highly popular among customers."

He further said, "bKash customers make around 2 to 3 crore transactions daily."

According to Bangladesh Bank data, the volume of MFS transactions has been gradually increasing since June 2024. In June, the volume stood at Tk1.22 lakh crore. In August, it reached Tk1.37 lakh crore, in September it increased to Tk1.45 lakh crore. In December, it peaked at Tk1.64 lakh crore, marking the highest transaction volume to date.

Bangladesh Bank Director and Nagad Administrator Muhammad Badiuzzaman Didar told TBS that daily transactions through MFS currently stand at around Tk5,000 crore.

"I believe that within the next two years, daily transactions could reach Tk10,000 crore, amounting to nearly Tk3 lakh crore per month," he said.

He noted that transaction patterns in MFS have evolved significantly, with many banks and merchants now integrated into the system. "If we can fully bring grocery stores, fish vendors, and small food sellers under this service, transactions will increase even further."

Badiuzzaman said Nagad is one of the most popular MFS providers in Bangladesh. "Since my appointment in August, both transactions and the number of customers have grown. The central bank's intervention has helped restore confidence among users."

He added that MFS platforms now offer a wide range of services, including utility bill payments, shopping transactions, salary disbursement, and remittance transfers.